Homomorphic Encryption Market

Homomorphic Encryption Market Size by Type (Additive, Partial and Full), Application (Data Privacy, Secure Data Computation, Data Monetization and Regulatory Compliance), End-use (Healthcare, Government, IT and Telecommunication, BFSI, and Others), Regions, Global Industry Analysis, Share, Growth, Trends, and Forecast 2023 to 2032

Base Year: 2022 Historical Data: 2019-21
  • Report ID: TBI-13989
  • Published Date: Jan, 2024
  • Pages: 237
  • Category: Information Technology & Semiconductors
  • Format: PDF
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The global homomorphic encryption market was valued at USD 165.82 Million in 2022 and grew at a CAGR of 8.55% from 2023 to 2032. The market is expected to reach USD 376.64 Million by 2032. The growth of the homomorphic encryption market can be attributed to the rising demand for securing data among organizations of different sizes. Further, the increasing focus on a data-centric approach has played a pivotal role in the market growth.

Market Introduction:

Converting data into ciphertext that can be examined and used as though it were still in its original format is known as homomorphic encryption. Completing intricate mathematical operations on encrypted data is possible because of homomorphic encryption, which keeps the encryption intact. Unlike other encryption techniques, homomorphic encryption allows mathematical operations to be carried out directly on the encrypted data, potentially improving the security of third-party handling of user data. Homomorphic encryption aims to develop an encryption technique that allows encrypted material to be added an endless amount of times. For homomorphic encryption to operate mathematically on encrypted data, there must be a relationship between the plaintext and the ciphertext. In cloud computing, homomorphic encryption may be crucial since it allows businesses to keep encrypted data on public clouds and utilize the analytics capabilities offered by the cloud provider.

Homomorphic Encryption Market Size

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Market Dynamics:


Provides security to commercial organizations: Businesses need help to safely outsource data to a third-party cloud environment for processing, analytics, or storage purposes. However, homomorphic encryption eliminates the need to rely on a third party's data security when outsourcing data processing or analytics. Sensitive information can be transferred and examined while still encrypted because the original data cannot be accessed without the proper decryption key. In sectors including finance, healthcare, and IT, this can be utilized to protect client privacy. Additionally, homomorphic encryption helps shield businesses from supply chain intrusions by cybercriminals. A compromise with a third party won't disrupt the organization's supply chain if the data given to them is encrypted and remains encrypted.


Computationally slow: Homomorphic encryption's slowness and high computational cost are among its main disadvantages. Ciphertexts demand more time and resources to decrypt, encrypt, and conduct other operations than plaintexts. Depending on the kind and degree of homomorphic encryption, a few to several orders of magnitude can be overhead. Thus, homomorphic encryption may result in considerable costs and latency and is inappropriate for high-throughput or real-time applications.


Favourable government initiatives: Organizations that disregard cybersecurity requirements may be subject to significant fines from regulatory agencies. Complying with new industry standards and regulations about cybersecurity and data has become increasingly more work for organizations. As technology advances, governments worldwide keep enacting stricter cybersecurity laws and regulations. ComplyingCompliance with the constantly changing regulatory environment is essential to successfully operating a managed service provider. To ensure that their procedures continue to be best practices, MSPs need to stay current on the most recent legislation and regulations.

Regional segmentation analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the most significant homomorphic encryption market, with a 38.91% market revenue share in 2022.

North America region will account for the largest market share with revenue growth. The region has a high demand for secure data computation and data monetization among organizations, which is promoting the use of homomorphic encryption services. Further, strict guidelines regarding regulatory compliance exist in countries like the U.S. and Canada. The regional authorities are rolling out initiatives to accelerate the growth of homomorphic encryption.

North America region Homomorphic Encryption Market Share in 2022 - 38.91%



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Type Segment Analysis

The type segment is divided into additive, partial and full. The full segment dominated the market, with a share of around 53.92% in 2022. A technique called full homomorphic encryption enables users to process data without having to decrypt it first. Full homomorphic encryption makes it possible to perform analytical functions directly on encrypted data and get encrypted results identical to what would happen if the functions were run on plaintext.

Application Segment Analysis

The application segment is divided into data privacy, secure data computation, data monetization, and regulatory compliance. The data privacy segment dominated the market, with a share of around 49.11% in 2022. Ensuring the security and privacy of sensitive information is crucial, as data breaches and privacy issues have become significant for organizations. This innovative feature ensures the data is encrypted while being computed, safeguarding its integrity and privacy.

End-use Segment Analysis

The end-use segment is divided into healthcare, government, IT and telecommunication, BFSI, and others. The BFSI segment dominated the market, with a share of around 36.06% in 2022. Homomorphic encryption technology improves privacy and facilitates data sharing between and among financial organizations. This facilitates financial crime detection, investigation, and prevention.

Some of the Key Market Players:
  • IBM
  • Microsoft
  • Galois, Inc.
  • CryptoExperts
  • Huawei Technologies Co., Ltd.
  • Duality
  • Cosmian
  • ShieldIO
  • Desilo
  • Cornami, Inc.
  • Intel Corporation
  • Thales Group
  • Inpher
  • Netskope, Inc.
  • Zaiku Group LTD

Report Description:

Attribute Description
Market Size Revenue (USD Million)
Market size value in 2022 USD 165.82 Million
Market size value in 2032 USD 376.64 Million
CAGR (2023 to 2032) 8.55%
Historical data 2019-2021
Base Year 2022
Forecast 2023-2032
Region The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East & Africa. Furthermore, the regions are further analyzed at the country level.
Segments Type, Application and End-use

Frequesntly Asked Questions

As per The Brainy Insights, the size of the homomorphic encryption market was valued 165.82 Million in 2022 to USD 376.64 Million by 2032.

Global homomorphic encryption market is growing at a CAGR of 8.55% during the forecast period 2023-2032.

North America region emerged as the largest market for the homomorphic encryption.

The market's growth will be influenced by the growing cases of data breaches.

The market's growth will be influenced by the growing cases of data breaches.

The constraints related to performance can hamper the market growth.

The increasing initiatives by government agencies are providing huge opportunities to the market.

Key players are IBM, Microsoft, Galois, Inc., CryptoExperts, Huawei Technologies Co., Ltd., Duality, Cosmian, ShieldIO, Desilo, Cornami, Inc., Intel Corporation, Thales Group, Inpher, Netskope, Inc., Zaiku Group LTD among others.

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This study forecasts revenue at global, regional, and country levels from 2019 to 2032. The Brainy Insights has segmented the global homomorphic encryption market based on below mentioned segments:

Global Homomorphic Encryption Market by Type:

  • Additive
  • Partial
  • Full

Global Homomorphic Encryption Market by Application:

  • Data Privacy
  • Secure Data Computation
  • Data Monetization
  • Regulatory Compliance

Global Homomorphic Encryption Market by End-use:

  • Healthcare
  • Government
  • IT and Telecommunication
  • BFSI
  • Others

Global Homomorphic Encryption Market by Region:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
  • Asia-Pacific
    • Japan
    • China
    • India
  • South America
    • Brazil
  • Middle East and Africa  
    • UAE
    • South Africa


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